Nvidia attributes the business increase to solid demand for Tegra 3 and Kepler graphics cards, both of which were driving the company's gains in the quarter.
"Kepler drove a record quarter for our notebook business based on the beginning of market share gains," said vice president Rob Csongor, during the company's earnings call. "And we believe that due to the later timing of Ivy Bridge rollout this year, the lion’s share of market share gains are still to come in the third quarter."
Nvidia said that it's desktop graphics business was up as well, but 28 nm supply constraints have limited the company to address only the enthusiast market so far. CEO Jen Hsun-Huang noted that he has "no idea how much business [Nvidia] left on the table" due to the limited supply and he expects that the supply of Kepler graphics cards will remain "constrained throughout the [current] quarter." There was no further information when this situation will ease, but Huang promised to provide an update on TSMC's 28 nm manufacturing at the end of Q3.
Any delay or constrained supply of cards is hurting Nvidia's bottom line. The company said that it believes that "roughly 80 percent" of gamers have graphics cards that are below the recommended specifications of the wave of new games coming out in the second half of the year. As a result "Kepler is the perfect upgrade for the millions of PC gamers around the world," Csongor noted, which implies that Nvidia has a substantial interest in getting Kepler out.
The company also highlighted some of its successes with Tegra 3. The company has established the processor as a credible product for smartphones and enjoys the positive reviews it shares with Google about the Nexus 7 tablet. The company also noted that it is driving apps and visuals on the 17-inch screen in the latest Tesla vehicle, the Model S sedan.